Chairman of China Insurer Anbang Group Wu Xiaohui Jailed for 18 Years

Chairman of China Insurer Anbang Group Wu Xiaohui Jailed for 18 Years

The former chairman of Anbang Insurance Group Wu Xiaohui, has been sentenced to 18 years in jail for fundraising fraud and embezzlement. He will be barred from political rights (holding of public office) for 4 years and to surrender $1.6 billion (CNY 10.5 billion) of personal assets.

Wu Xiaohui was found guilty of using other companies owned by him to indirectly controll Anbang Property and Casualty Insurance Co. and the Anbang Insurance Group. Between 2011 to 2017, he had also oversold insurance products above the approved limits, defrauding more than $9.88 billion (CNY 65.2 bilion).

In February 2018, the Chinese government had seized control of Anbang Insurance Group. Anbang Insurance Group is being managed by a group of officials from the China Insurance Regulatory Commission (CIRC) for one year. The regulatory intervention is one of China’s recent moves to stop Chinese conglomerates on aggressive overseas acquisition and to reduce financial risk. The insurance conglomerate have significant stakes in banks and property developers including China Minsheng Banking Corp Ltd, China Merchants Bank Co Ltd, developers China Vanke Co Ltd and Gemdale Corp.

Anbang Insurance Group is a global insurance company with total assets of nearly CNY 1,9 trillion ($304 billion). The group employs over 30,000 employees and has a customer base of 35 million worldwide. Anbang Insurance Group was established in 2004,

In 2004, Anbang Property & Casualty Insurance was established and opened its first branch in Beijing. In 2011, CIRC approved the restructuring of Anbang Property & Casualty Insurance for the establishment of Anbang Insurance Group. Chairman Wu Xiaohui had transformed the group over the 10 years into one of the world’s largest insurance company. He is married to Zhuo Ran, the granddaughter of Deng Xiaoping, China’s leader between 1978 to 1989.

Anbang Insurance Group is a global insurance company with total assets of nearly 1971 billion RMB. With over 30,000 employees and a customer base of 35 million worldwide, Anbang stands out as one of the most profitable insurance companies in China. Its business covers life insurance, P&C insurance, health insurance, pension insurance, banking, asset management, etc. With a “customer-centric” strategy in mind, Anbang Insurance is dedicated to creating value for its worldwide customers.